There's is 1400 Digimon in total and Cyber Sleuth has 240.
There's 700 Yokais from Yokai Watch, yet the latest at one launched with 100.
So if you are comparing it to those games, Pokemon did better in one of your chief complaints.
Cyber Sleuth has 341, well, the complete edition at least - which I'm pretty sure it's what we're comparing it to. The 341 are also quite detailed, the models themselves not much above Pokémon standards, but they all have several animations for a lot of different things and at least one detailed signature animation for every single one of them - some have multiple. Regardless, the difference here is obvious: Digimon has never, ever, been about "catching them all". It's never been the point in a Digimon game to feature all of them, in fact I don't think there's ever been a game in the franchise that has. Furthermore, Digimon is a small-scale, small-budget franchise, most of its games don't reach 1 million copies sold, if even half of that.
Pokémon is the largest multimedia franchise in the world, all of its mainline games always sell 15 million or more, they have the backing of the most reputable developer in the world, and has always been about catching them all. All of its games so far had every Pokémon available to catch, therefore this is a step back. It's as simple as that.
I wouldn't have minded the Pokémon cut if it meant serious improvements in other areas, graphics being one of them. But since your point here is defending the graphics, then what's unacceptable here is the Pokédex cut, which clearly did not happen because of technical limitations, but rather a business decision by the Pokémon Company - probably well beyond Game Freak's hands, to be fair.
Personally, I wouldn't have been interested in it either way. Beyond the technical issues I'm glad people are finally taking notice of, I have a serious distaste for the entire artistic direction Pokémon has been taking. I hate the music, I hate the new designs, I hate the gimmicks, so I'm fine playing anything else - like Cyber Sleuth, for example. Great game.